If a court finds that a particular credit agreement is reckless, it must also decide whether or not the consumer is over-indebted at the time of the legal proceedings. All consumer debts must be taken into account. If the court finds that the consumer is over-indebted, it may issue an order that credit bureaus are required to protect the confidentiality of the consumer credit information they hold or report on. Credit providers must also show consumers the possibilities of excluding telemarketing campaigns sold or distributed, marketing or customer lists, and mass distribution of emails or SMS messages. Revolving credit accounts typically have a streamlined application and credit agreement process as non-revolving loans. Non-revolving loans – such as personal loans and mortgages – often require a broader loan application. These types of loans usually have a more formal loan agreement process. This process may require the loan agreement to be signed and agreed upon by the lender and client at the final stage of the transaction process; the contract shall be deemed effective only after both parties have signed it. If we enter into a new credit agreement with you, we will need to obtain your consent to market other products to you A lender who has incurred costs for the seizure of goods in the performance of a debt may apply to a court to order the consumer to pay the garnishment costs. The court issues such an order only if the consumer has provided false information about his address or the location of the goods. During this process, a consumer is not allowed to use his credit facility (. B his credit card). nor may it conclude another credit agreement.
A creditor who enters into a credit agreement with a consumer while the consumer is subject to a debt review runs the risk of declaring the credit agreement as reckless credit. With regard to Article 4(1) of the NCA, the NCA shall apply to any credit agreement between parties acting on market terms and concluded or in force in South Africa, subject to Articles 5 and 6 of the NCA. In addition, §§ 40 and 89 NCA also stipulate that an unregistered lender may not offer, provide or grant loans. A credit provider must be registered at the time of entering into a loan agreement. In the absence of such registration, a credit agreement may be declared illegal and void. If a credit agreement is illegal despite other laws or provisions contrary to a contract, a court must make a fair and just order, including, but not limited to, ordering that the loan agreement be void from the date it was entered into. A consumer may at any time return goods subject to a credit agreement to a creditor, whether or not the consumer is in default. The credit provider must then sell the goods and use the product to pay the bill. Under the former Credit Agreements Act, this procedure applied only if the consumer was in default. This new provision gives the consumer an extraordinary right to terminate the contract if he so wishes.
Ancillary credit agreements do not fall within the definition of credit agreements in the law. Article 5 contains the limited provisions of the law applicable to them. A credit provider may apply to the courts for the enforcement of a credit agreement only if a credit agreement can be declared imprudent only if it is determined that the consumer is over-indebted. If the debt advisor determines that the consumer is not over-indebted but considers one or more credit agreements to be reckless, those agreements should not be declared reckless. Credit providers can therefore still enforce loan agreements that are indeed reckless, but they do not have to be formally declared reckless. In any proceedings concerning credit agreements, a court may declare that a credit agreement is reckless; in this case, the court can make a decision A complex issue is at the heart of this case: was there an obligation to register as a lender if the principal debt exceeds the legal threshold, even if the agreement is a single transaction; and the lender is not active in the lending industry. At present, any credit agreement through NIL loaned to a consumer in South Africa where interest (or similar fees/charges) is charged on the loan (subject to the exceptions below or if the parties are not doing business on market terms) would in fact fall within the scope of the NCA, unless, of course, it falls under the following exceptions….